Talks to privatise search and rescue helicopters grounded

The Government today pulled out of a planned announcement about the privatisation of the UK's search and rescue helicopters, leaving the future of the service in doubt.

Transport Secretary Philip Hammond said the preferred bidder for the £6 billion contract, the
Soteria consortium which includes the Royal Bank of Scotland, had told him about an eleventh-hour problem with its bid.

"In the circumstances, it is not appropriate for us to proceed with the planned announcement until the status of this issue has been clarified," Hammond said.

The Department of Transport refused to give any further details about the delay but said it would set out its plans for the search and rescue service "as soon as we are able".

The Soteria consortium, which also includes French group Thales, Canadian helicopter firm CHC and US chopper-maker Sikorsky, was due to take over search and rescue services in Britain from 2012 for 25 years.

The ageing Sea King helicopter fleet was expected to be replaced by the Sikorsky S92A helicopter.

The service is currently provided by the RAF, Royal Navy and the Maritime and Coastguard Agency.
One of its pilots is Prince William, who is based at the search and rescue headquarters on Anglesey in North Wales.